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A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations. The term also refers to any carrier that is or was owned by a government, even long after their privatization when preferential rights or privileges continue.^[1]^{[disputed – discuss]}

Flag carriers may be known as such due to maritime law requiring all aircraft or ships to display the state flag of the country of their registry.^[2]

A flag carrier (if it is a certificated airline rather than a holding company, conglomerate, or multinational private equity firm) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries.

Background

An Airbus A330-200 of the Lebanese flag carrier Middle East Airlines.

The term "flag carrier" is a legacy of the time when countries established state-owned airline companies. Governments then took the lead due to the high capital costs of establishing and running airlines. However, not all such airlines were government-owned; Pan Am, TWA, Cathay Pacific, Union de Transports Aériens, Canadian Pacific Air Lines and Olympic Airlines were all privately owned. Most of these were considered to be flag carriers^[3] as they were the "main national airline"^[4] and often a sign of their country's presence abroad.^[5]^[6]

The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These Bilateral Air Transport Agreements similar to the Bermuda I and Bermuda II agreements specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers such as Israel's El Al^[7] or Lebanon's Middle East Airlines^[8] for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.^[9]

In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited, or heavily regulated to avoid direct competition.^[10] Even where privately run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets.^[11]

In the last two decades, however, many of these airlines have since been corporatized as a public company or a state-owned enterprise, or completely privatized.^[12] The aviation industry has also been gradually deregulated and liberalized,^[13] permitting greater freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement.^[14] One of the features of such agreements is the right of a country to designate multiple airlines to serve international routes with the result that there is no single "flag carrier".^[15]

List of flag-carrying airlines

The chart below lists airlines considered to be a "flag carrier", based on current or former state ownership, or other verifiable designation as a national airline.

Country or Region	Airline	Details of current state ownership	Details of former state ownership
Afghanistan	Ariana Afghan Airlines^[16]	Majority^[17]
Albania	Air Albania^[18]
Algeria	Air Algérie^[19]	State-owned^[20]
Angola	TAAG Angola Airlines^[21]	Majority^[22]
Argentina	Aerolíneas Argentinas^[23]	State-owned^[23]
Australia	Qantas^[24]	None	State-owned until 1992.^[25]
Austria	Austrian Airlines^[26]	None – owned by Lufthansa	State-owned until 5 December 2008.^[27]
Azerbaijan	Azerbaijan Airlines^[28]
Bahamas	Bahamasair^[29]	State-owned
Bahrain	Gulf Air^[30]
Bangladesh	Biman Bangladesh Airlines^[31]	Public-limited company	State-owned until 23 July 2007.
Belarus	Belavia^[32]	State-owned^[33]
Belgium	Brussels Airlines^[34]	None – owned by Lufthansa^[35]	Was state-owned in its original incarnation (SN Brussels Airlines)
Bhutan	Druk Air^[36]	None
Bolivia	Boliviana de Aviación^[37]	State-owned^[38]
Botswana	Air Botswana^[39]	State-owned^[39]
Brunei	Royal Brunei Airlines^[40]	State-owned^[40]
Bulgaria	Bulgaria Air^[41]	Minority State-owned (0.01%)^[42]
Burkina Faso	Air Burkina
Burundi	Air Burundi	State-owned
Cambodia	Cambodia Angkor Air^[43]	Majority (51%)^[44]
Cameroon	Camair-Co^[45]
Canada	Air Canada^[46]	None	State-owned until 1989.^[47]
Cape Verde	TACV^[48]
Cayman Islands	Cayman Airways	State-owned (100%)^[49]
Chad	Chadian Airlines^[50]^{[nb 1]}	Majority (51%)^[51]
Chile	LATAM Chile^[52]^[53]	None	State-owned until September 1989.^[54]
China	Air China^[55]	Majority (51.7%), in which:^[56] 40.98% through CNAHC (100% state-owned) 10.72% through CNACG (100% owned by CNAHC)	State-owned until 2004, and indirectly control through parent company until now.^[57]
Colombia	Avianca^[58]	None
Croatia	Croatia Airlines^[59]	Majority (98%)^[60]
Cuba	Cubana de Aviación^[61]
Czech Republic	Czech Airlines^[62]	None^[62]
DR Congo	Congo Airways^[63]	State-owned^[63]
Denmark	Scandinavian Airlines^[64]	Joint venture^{[nb 2]}
Norway
Sweden
Djibouti	Air Djibouti^[67]	Joint venture
Ecuador	TAME^[68]	State-owned^[69]
Egypt	EgyptAir^[70]	State-owned^[71]
Equatorial Guinea	CEIBA Intercontinental^[72]
Eritrea	Eritrean Airlines	State-owned
Estonia	Nordica^[73]	State-owned^[74]
Ethiopia	Ethiopian Airlines^[51]	State-owned^[75]
Faroe Islands	Atlantic Airways^[76]
Fiji	Fiji Airways^[77]	Majority (51%)^[78]
Finland	Finnair^[79]	Majority (55.8%)^[80]
France	Air France^[81]	18% share^[82]
French Polynesia	Air Tahiti Nui^[83]	Majority^[84]
Georgia	Georgian Airways	None
Germany	Lufthansa^[85]	None	State-owned until 1994;^[86] remaining government shares were sold in 1997.^[87]
Greece	Aegean Airlines^[88]
Greenland	Air Greenland^[89]
Guernsey	Aurigny Air Services^[90]	State-owned^[91]
Guyana	Caribbean Airlines^[92]	None
Hong Kong	Cathay Pacific^[93]	None
Iceland	Icelandair^[94]
India	Air India^[95]	State-owned^[95]
Indonesia	Garuda Indonesia^[96]	Majority
Ireland	Aer Lingus^[97]	None – owned by IAG	State-owned until September 2006.^[98]^[99]
Iran	Iran Air^[100]	State-owned^[101]
Iraq	Iraqi Airways^[102]
Israel	El Al^[103]	Minority (~1.1%)^[104]	State-owned until June 2004.
Italy	Alitalia^[105]	Minority (19.48%)^[106]	State-owned until 2008, and indirectly control through a state-owned company since 2013.^[107]^[108]
Ivory Coast	Air Côte d'Ivoire^[109]	Minority (49%)
Jamaica	Caribbean Airlines^[110]	Minority (16%)
Japan	Japan Airlines^[111]	None	State-owned until 1987.
Jordan	Royal Jordanian^[112]
Kazakhstan	Air Astana^[113]	Majority (51%)^[114]
Kenya	Kenya Airways^[115]	Minority (29.8%)^[116]
Kiribati	Air Kiribati^[117]
Kuwait	Kuwait Airways^[118]	State-owned^[119]
Laos	Lao Airlines^[120]	State-owned^[121]
Latvia	Air Baltic^[122]	Majority (80,05%)^[123]
Lebanon	Middle East Airlines^[124]
Libya	Afriqiyah Airways^[125]	State-owned^[126]
Libya	Libyan Airlines^[127]	State-owned^[127]
Luxembourg	Luxair^[128]	Majority (73.86%) ^[129]
Macau	Air Macau^[130]	Minority (5%)
Madagascar	Air Madagascar^[131]	Majority
Malawi	Malawian Airlines^[132]	Majority (51%)^[132]
Malaysia	Malaysia Airlines^[133]	State-owned (100%) through Khazanah Nasional^[134]
Maldives	Maldivian
Malta	Air Malta^[135]	Majority^[136]
Mauritania	Mauritania Airlines^[137]
Mauritius	Air Mauritius^[138]
Mexico	Aeroméxico^[139]	None	State-owned until 2007.
Moldova	Air Moldova^[140]
Mongolia	MIAT Mongolian Airlines^[141]	State-owned^[142]
Montenegro	Montenegro Airlines^[143]
Morocco	Royal Air Maroc^[144]	State-owned^[145]
Mozambique	LAM Mozambique Airlines^[146]	State-owned
Myanmar	Myanmar National Airlines^[147]	State-owned^[148]
Namibia	Air Namibia^[149]	State-owned (100%)^[150]
Nauru	Nauru Airlines^[151]	State-owned^[151]
Nepal	Nepal Airlines^[152]	State-owned
Netherlands	KLM^[153]	Minority (6%)^[154]
New Zealand	Air New Zealand^[155]	Majority (53%)^[156]	State-owned until 1989, partially re-nationalized in 2001.^{[citation needed]}
North Korea	Air Koryo^[157]	State-owned^[158]
Oman	Oman Air^[159]	Majority^[160]
Pakistan	Pakistan International Airlines^[161]	State-owned^[162]
Panama	Copa Airlines^[163]	None
Papua New Guinea	Air Niugini^[164]
Philippines	Philippine Airlines^[165]
Poland	LOT Polish Airlines^[166]	State-owned^[167]
Portugal	TAP Air Portugal^[168]	Majority (50%) ^[169]
Qatar	Qatar Airways^[170]	State-owned
Republic of the Congo	Equatorial Congo Airlines^[171]	Majority (70%)^{[citation needed]}
Réunion	Air Austral^[172]
Romania	TAROM^[173]	Majority (95%)^[174]
Russia	Aeroflot^[175]	Majority (51%)^[176]
Rwanda	RwandAir^[177]	State-owned^[177]
Saint Vincent and the Grenadines	SVG Air
Samoa	Samoa Airways^[178]	State-owned^[179]
São Tomé and Príncipe	STP Airways	None
Saudi Arabia	Saudia^[180]	Majority
Senegal	Air Senegal^[181]
Serbia	Air Serbia^[182]	Majority (51%)^[183]
Seychelles	Air Seychelles^[184]	None
Solomon Islands	Solomon Airlines^[185]	State-owned (100%)^[186]
Singapore	Singapore Airlines^[187]	54.5% through Temasek Holdings^[188]
Slovenia	Adria Airways^[189]	None^[189]
South Africa	South African Airways^[190]	State-owned^[191]
South Korea	Korean Air^[192]	None^[193]
Spain	Iberia^[194]	Minority (5%)^[195]
Sri Lanka	SriLankan Airlines^[196]	State-owned^[197]
Sudan	Sudan Airways	State-owned^[198]
Suriname	Surinam Airways^[199]	State-owned^[200]
Swaziland	Eswatini Airlink^{[citation needed]}	Joint venture
Switzerland	Swiss International Air Lines^[201]	None – owned by Lufthansa^[202]
Syria	Syrian Air^[203]	State-owned
Taiwan	China Airlines^[204]	None	State-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation.^[205]
Tajikistan	Tajik Air^[206]	State-owned
Tanzania	Air Tanzania	State-owned
Thailand	Thai Airways International^[207]	Majority (51%)
Trinidad and Tobago	Caribbean Airlines^[208]	Majority (84%)^[209]
Tunisia	Tunisair^[210]	Majority^[210]
Turkey	Turkish Airlines^[211]	Minority (49%)
Turkmenistan	Turkmenistan Airlines^[212]	State-owned
Uganda	Uganda Airlines^[213]
Ukraine	Ukraine International Airlines^[214]
United Arab Emirates	Etihad Airways^[215]	State-owned^[216]
United Arab Emirates	Emirates^[217]	State-owned
United Kingdom	British Airways^[218]	None	State-owned until 1987.^[219]
Uzbekistan	Uzbekistan Airways^[220]	Majority
Venezuela	Conviasa^[221]
Vietnam	Vietnam Airlines^[222]	Majority (86.2%)^[222]
Vanuatu	Air Vanuatu^[223]
Yemen	Yemenia^[224]	Majority
Zimbabwe	Air Zimbabwe^[225]	State-owned^[225]

Notes

^ The airline is scheduled to be launched on 1 October 2018 (2018-10-01).^[51]

^ SAS is partly owned by the governments of Denmark and Sweden, and was partly owned by the government of Norway until June 2018. SAS is the flag carrier for all three nations.^[64]^[65]^[66]

References

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^ Torr, Jeremy (27 April 2016). "Mauritius bids for key Asia-Africa transit hub status". Air Transport World. Archived from the original on 30 April 2016. In March 2016, the island’s flag carrier Air Mauritius said it would move its Southeast Asian hub from Kuala Lumpur, Malaysia to Singapore’s Changi.

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^ Montag-Girmes, Polina (16 November 2016). "International airlines increase capacity, frequencies to Russia". Air Transport World. Archived from the original on 17 December 2016. The Thailand flag carrier ceased Moscow operations in March 2015 because of weak demand.

^ "Status quo for Caribbean Airlines – chaos surrounds the would-be flag carrier of the region". Centre for Aviation. 21 April 2014. Archived from the original on 21 April 2014. The board of beleaguered carrier Caribbean Airlines, the national airline of Trinidad and Tobago, has reportedly undertaken an evaluation of the airline’s routes as its long-haul operation to London continues to underperform.

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^ ^a^b "Tunisair's sluggish attitude towards change makes it ill-prepared for Open Skies". Centre for Aviation. 21 August 2012. Archived from the original on 4 December 2012. Retrieved 4 December 2012. As a majority state-owned airline in North Africa, Tunisair has retained most of the flag carrier privileges that are cemented in the 1944 Chicago Convention, but those protectionist practices run counter to the present realities of passengers wanting choice and low fares.

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^ Dron, Alan (17 June 2016). "Etihad, Avianca Brasil ink new codeshare". Air Transport World. Archived from the original on 17 June 2016. United Arab Emirates (UAE) flag carrier Etihad Airways has signed a codeshare agreement with Avianca Brasil in the Abu Dhabi-based carrier’s latest move to increase its penetration in the South American market.

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External links

International Air Transport Association

US Maritime Administration

[52] The airline is scheduled to be launched on 1 October 2018 (2018-10-01).^[51]

[SAS-68] SAS is partly owned by the governments of Denmark and Sweden, and was partly owned by the government of Norway until June 2018. SAS is the flag carrier for all three nations.^[64]^[65]^[66]

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[Yemenia_suspends_services-226] Dron, Alan (30 March 2015). "Yemenia suspends services". Air Transport World. Archived from the original on 31 March 2015. The Yemen national carrier said it was suspending flight operations “until further notice due to the prevalent unfavorable operational situation and restriction imposed on Yemen airspace.”

[flyafrica.com_and_fastjet_give_Zimbabwe_its_first_taste_of_LCCs_with_local_start-up-227] "flyafrica.com and fastjet give Zimbabwe its first taste of LCCs with local start-up". Centre for Aviation. 2 July 2014. Archived from the original on 2 July 2014. Government-owned flag carrier Air Zimbabwe currently operates only two international routes although it has been trying for some time to resume more international services.

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Flag carrier

Contents

Background

List of flag-carrying airlines

Notes

References

External links

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